German Chancellor, Angela Merkel's conservatives and the pro-business Free Democrats agreed to axe an unpopular doctor's office fee from January.BERLIN: The "Made in Germany" brand has not been damaged by the Volkswagenscandal, but the carmaker needs to deal with the matter in a transparent manner, German Chancellor Angela Merkel said on Saturday in her weekly podcast.

Almost six weeks after it admitted using illegal software to falsify U.S. diesel emissions tests, VW is under pressure to identify those responsible, fix up to 11 million affected vehicles and convince regulators, investors and customers it can be trusted again.

"A lot will depend on how Volkswagen deals with the issue," Merkel said, adding that VW could recover if it acts transparently and changes its organisational structures so that nothing similar can happen again.